The New Classical Model Implies That the Effect of Government

question 105

Multiple Choice

The new classical model implies that the effect of government increasing expenditures by debt financing

• A)has the same effect as if it was financed by raising current taxes.
• B)is highly expansionary on aggregate demand and the economy.
• C)will result in higher real interest rates.
• D)will result in lower personal savings.

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Definitions:

Conducting Primary Research

The process of collecting original data directly from sources through methods like surveys, interviews, or experiments, as opposed to analyzing existing data.

Developing Problem Statement

the process of outlining a clear, concise description of the issues that need to be addressed by a project or study.

Credibility

The quality of being trusted, believed, or convincing; crucial for effective communication and persuasion.

Main Idea

The main idea refers to the primary or central concept, point, or message that an author or speaker is trying to communicate to the audience.